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Santan Company manufactures and sells a single product. Planned and actual production in its first year of operation was 100,000 units. Planned and actual costs for the year were as follows:
Manufacturing Non-manufacturing
Variable P600,000 P500,000
Fixed P400,000 P300,000
Problem 1: The company sold 85,000 units of product at a selling price of P30 per unit. Using variable costing, the company's operating profit was
Select one:
a. P750,000b. P915,000c. P975,000d. P840,000
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